Its been a long time since i posted my technical view on nifty....
Weekly chart
We have our first weekly red bar after almost 9 green bar. Hats off to this rally which took many of us by surprise. It looks like a short term trend reversal with weekly tgt of 5091 and then 4933. A weekly close above 5282 nullifies this target and opens fresh long target of 5505.
rsi and cci made a hook. CCI has a difference of -25 points from its previous bar, which means downward momentum is strong enough. MACD is at -29 and that's bearish. Stoch has made a cross over. All signals to a correction.
Fibo retracement points to 5225 and then 5118 (38%). 5032 remains 50% retracement and beyond that, this rally is officially terminated.
daily charts had a nice cci ghost pattern that has met its target. CCI has pierced the -100 mark and LSMA25 is at 5364, unless that comes down, further long positions is not possible.
RSI mid term and long term lines have just crossed and that's a sign that we will not break the weekly high of 5398 in a hurry. 5400 calls have been shorted badly and the LTP was just 19 points. That means we now have a official upper limit and now we are in the process of discovering the lower limit of the trading range.
5294 is the high of the last trading day. So That acts at the stoploss for all short positions.
hourly chart is showing a ZLR, which means we continue on our southward journey. LSMA-25 is at 5267. Unless we cross that and the CCI crosses the -48 mark, we remain in the correction mode in the very short term...